The impact of changes in housing prices on China’s economy

Abstract

China’s housing prices have experienced significant fluctuations over the years, with some cities experiencing rapid increases and others showing signs of stabilization. Similarly, China’s GDP growth has been a topic of interest, with the country maintaining robust economic expansion. This paper will start with the background of Chinese housing prices. A theoretical analysis will be conducted on the dynamic changes in China’s housing prices and GDP. Subsequently, I will analyze the impact of housing prices on economic growth and conclude that a steady increase in housing prices benefits economic growth. In contrast, a rapid rise in housing prices is not conducive to economic growth. Finally, I will provide a relevant policy recommendation regarding China’s current housing price issues.